The United States is home to a vast network of highways, roads, and interstates, which makes driving one of the most practical ways to travel. According to the recent stats, the usual mode of transportation to get around the country is using a personal vehicle, as it allows independence and convenience that public transport often cannot provide
Most foreigners coming to America, whether for studying, working, or visiting, look for the best options to travel or commute. While having a car offers flexibility and independence, driving in the USA comes with the responsibility of having a valid driver’s license and active car insurance. Driving in the US is considered a privilege, and having active auto insurance is a key part of respecting this privilege.
However, car insurance in USA is a challenging and lengthy process to vet an individual’s eligibility to drive legally on the American roads.
The guide below will explain why car insurance for non US citizens is important, the challenges, benefits, and the in-depth steps to obtain it.
Auto Insurance for Foreigners
If you’re a temporary worker, a foreign visitor, or a student staying in the U.S and planning to drive a vehicle for a few months, you would need vehicle insurance. It doesn’t matter if you have an international driver’s license or a driving history. Car insurance is required by law in almost every state to legally drive on American roads. Driving without can lead to fines or losing driving privileges.
Here is a closer look at who exactly needs car insurance in USA:
- International students
- Business travelers or foreign tourists
- Temporary visitors
- New Immigrants
- Work visa holders
Even if they drive occasionally or they’re using a family of host’s vehicle, it is important they have a temporary insurance policy to avoid any unforeseen circumstances.
Why Car Insurance for Foreigners in USA is Essential
While we know that car insurance is legally required in the US, many people underestimate its importance until they face an accident on the road. Beyond meeting legal requirements, car insurance for non US citizens protects their finance and their ability to stay compliant with the visa. It is a safe way to navigate the new country with peace of mind.
Here’s why it is essential:
Requirement for Vehicle Registration and Leasing
You need vehicle insurance to lease, buy, or sell a vehicle in the US. Before you can legally drive on American roads, you must show proof of insurance to complete the required Department of Motor Vehicles (DMV) process. This whole process includes:
- Registering your vehicle
- Obtaining license plates
- Receiving a title under your name
Without completing the DMV process, you cannot legally drive your vehicle. Operating an unregistered vehicle can result in vehicle impoundment and legal trouble. In many states, you are required to maintain valid insurance at all times to keep your registration active.
Building a US Driving and Credit History
Having continuous auto insurance for non US citizens is one of the best ways to start building a driving record. Your driving record typically includes your driving behavior, traffic violations, or accidents you have had while operating the vehicle. Insurance companies use your record to assess your risk level as a driver.
When you drive safely without accidents, you can prove to insurers that you’re a low-risk driver. Over time, this can help you qualify for lower insurance premiums and safe driver discounts.
It is a Legal Requirement
Having car insurance for non US citizens not only helps to protect your finances but also keeps you compliant with your state laws while you’re in the country.
For non US citizens, driving without a valid insurance can complicate your immigration status and affect your visa renewal applications. Many visas, such as student or work visas, require you to remain compliant with the state and federal laws during your stay in the country, and driving uninsured can be considered a violation of these requirements.
Financial Protection from High Accident Costs
In any unfortunate circumstances involving an accident, your insurance can help you avoid paying large expenses out of pocket. Even a minor collision can lead to costly vehicle repairs, and if you or any other person is injured, this can lead to a spike in medical bills.
Without car insurance, you will be personally responsible for these costs, which you will have to pay by yourself.
Challenges Foreigners Face While Trying to Get Insured in the USA
Getting car insurance for non US citizens can be challenging, especially if you are new to the country. Below is a detailed look at the challenges:
Lack of US Driving History
Insurance companies rely on an individual’s US driving records to calculate rates and assess risks. As a result, many looking for car insurance for non-US citizens are categorized as high-risk drivers and face higher premiums until they build a clean driving history over the years.
Foreign License and Documents
Requirements vary widely according to the state and company. Some insurance providers may require an International Driving Permit (IDP) in addition to your foreign license. However, most insurers don’t accept a foreign license and instead require you to go through the process over again, which involves:
- Written tests
- Road tests
- Additional fees
This can create stress for newcomers looking for car insurance immediately upon arrival.
Documentation Challenges (e.g., driver’s license)
Securing car insurance for non US citizens often requires providing multiple documents. Insurers can ask you for your valid passport, visa, arrival records, proof of address, International Driving Permit (IDP), and photocopies of each.
Missing paperwork can cause delays and prevent approval for coverage. Based on each insurance company, the requirements and the application process can be different.
Higher Costs for Insurance
To this date, high insurance premiums are often one of the biggest challenges for newcomers. Because many lack US driving records and credit history, insurance companies consider them as high-risk drivers and often quote them at higher prices.
These higher costs of insurance can become a burden for many while trying to find accommodation in the country. Trying to find a suitable quote from different insurance companies can increase the workload and bring unwanted stress.
Language Barriers
Many insurance documents, websites, and customer service communications are in English, which can be challenging for foreigners who are not fluent. Failing to understand important information can lead to mistakes in choosing the policy and even filing claims.
The best course of action is to seek insurers with multilingual support or use translated resources to overcome this challenge.
How to Get Car Insurance for International Drivers
Getting car insurance for non US citizen involves clear, practical steps listed below.
1. Compile Required Documents
- Passport and visa
- Proof of US address (lease, utility bill, bank statement)
- A foreign valid driver license
- I-94 arrival/departure record
- Social Security Number (if you have one) or other identification documents
2. Research and Compare Rates
A quote from a car insurance company would include three important things: Coverage options, deductibles and monthly premiums.
Search for at least three to five companies and get quotes from them. Compare the prices to see which best matches your needs.
Expect higher rates initially if you have no previous US driving experience. Along the way and as your record builds, you can claim to decrease your monthly premium.
3. Choose the Right Coverage
- Liability insurance coverage: Covers damages or injuries you cause to others in accidents where you are at fault.
- Collision coverage: Pays for your vehicle if it’s damaged in a collision, regardless of who is at fault.
- Comprehensive coverage: Covers damages to your vehicle caused by theft, vandalism, or natural disaster.
- Uninsured/underinsured motorist coverage: Protects you from an accident where the other driver does not have an insurance of sufficient coverage.
Before selecting an auto insurance policy, check your regional requirements regarding the mandatory minimum coverage you need. Selecting a policy with additional coverage can protect your finances in case of a serious collision.
4. Register Your Vehicle
Once you buy your policy, save your insurance card and keep it in your vehicle where it is easily accessible. Use your proof of insurance to register your vehicle at the DMV (Department of Motor Vehicles) and obtain your license plates.
Best Insurance Options for Foreigners
Some of the insurance companies and options for non-US citizens and international drivers include:
- International Student Insurance: Offers car insurance to international students and exchange visitors.
- Specialized Brokers: Some brokers specialize in dealing with car insurance for non US citizens, helping you deal with experienced people.
- Companies, e.g., State Farm and Geico: Well-known insurers that accept foreign driver’s licenses in many regions and provide competitive rates with strong customer support.
When getting auto insurance for foreigners in USA, look for companies that offer multilingual support and provide flexible payment options. Checking customer reviews or discussion forums can also help in selecting the right insurance provider.
Cost Expectations and Ways to Save
When securing car insurance for international drivers, it is important to be aware of the cost expectations. As discussed above, foreigners often pay higher premiums initially due to a lack of US driving and credit history. However, the cost of the vehicle insurance can highly depend on the region, coverage type, age, and vehicle model.
States like Nevada, Florida, and Michigan have some of the highest car insurance rates in the country. However, in Texas, drivers in large cities like Houston pay around $42 per month for full coverage. According to ValuePenguin, States like Maine, New Hampshire, and Vermont cost less than $110 per month, on average.
Ways to Save
- Opt for a Higher Deductible: Choosing a higher deductible will immediately lower your monthly premium. However, in this case, you will be responsible for the amount of an incident that occurs.
- Maintain Continuous Insurance: Keeping your insurance with the same provider can help build your US driving record, which can reduce your car insurance rates over time.
- Bundle Policies: Having renters’ or health insurance from the same provider can make you eligible for discounts.
- Usage-Based Insurance (UBI): Also known as telematics insurance is a car insurance for foreigners where your premium depends on your driving behaviours, age, credit history, and location. Insurers, in this case, install a device in your vehicle or a mobile app to track your driving habits.
State Differences
Auto insurance differs by state based on their rules, required coverage amounts, and average premium costs. These differences can affect how much you pay on average and what coverage you need to meet the state minimum car insurance requirments to drive legally in your state.
Here are some examples:
- California: Requires a minimum liability coverage of $15,000 per person for bodily injury.
- New York: Requires $25,000 per person for bodily injury.
Florida is part of a no-fault state where your insurance pays for your medical expenses, no matter who caused the accident. Other states are at-fault states where the driver who is at fault is responsible for the cost of medical bills.
Alternatives to Traditional Insurance Coverage
While most foreigners in the USA would need auto insurance to drive legally, below are some substitutes that may work depending on your situation.
Rental Car Insurance: If you drive occasionally or plan on renting a car, you can purchase insurance directly from the rental car company for the duration of your rental period.
Car-Sharing Services Insurance: Services like Zipcar or Turo include insurance within their membership or rental fee.
These options can help you drive legally without the need for a traditional auto insurance policy.
Driving Confidently in the USA as a Foreigner
For foreign drivers, driving in the USA can be overwhelming at first, but with the right insurance, you can drive confidently. The main purpose of good insurance coverage is to ensure foreign drivers feel at ease with their flexible payment styles and chat support.
If you’re not satisfied with your current provider, you can always look for good options to change your plan that best suits your needs. Researching and studying reviews on discussion forums can also help identify customer feedback.
The Bottom Line
The purpose of the right car insurance is to protect you financially and legally. Understanding the types of coverage, state requirements, and a bit of research can help find the right insurance provider.
If you know your travel dates or duration of stay, research the state requirements beforehand to prepare everything that’s needed. You can arrange these documents from your home country to help speed up the process.
Indeed, car insurance for international drivers is more than a requirement. It is important to explore the USA with freedom and peace of mind, knowing that you’re covered and a car insurance company has your back if anything goes south.
Frequently Asked Questions
Do I need to have car insurance in the U.S. if I am not a citizen?
Yes. Regardless of citizenship, most states require you to have car insurance to drive legally. Driving without it will get you fined, license suspended or penalized.
Can I buy car insurance in the U.S. with an International Driver’s License?
Yes. Many insurers accept an International Driving Permit (IDP) with your foreign license, some may also ask for additional ID or driving history.
What’s the easiest way to get car insurance for a short stay in the U.S.?
For short term visits, consider temporary or rental car insurance as these provide coverage without a long term commitment. Some travel insurance plans also include auto coverage.
Is car insurance available for international students in the U.S.?
Yes. Many insurers offer coverage for international students but premiums will be higher if you have little or no U.S. driving history.
Why do many insurance companies refuse to cover foreign drivers?
Insurers don’t have access to foreign driving records so it’s harder to assess risk. This uncertainty can lead to higher premiums or fewer policy options for non-resident drivers.
Does Insurance Navy offer car insurance for non-U.S. citizens?
Yes. Insurance Navy offers car insurance for drivers without U.S. citizenship including those with foreign licenses or international driving permits.
